Local housing market draws national builders

A tightening housing inventory and steady demand for new homes throughout Southwest Florida has national builders returning to the area for the first time since the Great Recession.

In recent months, some of the U.S.'s largest homebuilders have either announced plans or begun construction on projects put on hold during the prolonged economic downturn that began five years earlier.

"Job growth in feeder markets is rising, and that's allowing people who thought about selling a home to come down and retire in areas like Sarasota," said Tony Polito, Tampa Bay regional director for Metrostudy, a housing data provider. "Builders are picking up on that."

The renewed national interest comes at the end of a year in which local builders such as Neal Communities and Medallion Home posted all-time sales highs and began new communities.

With a shrinking supply of existing real estate for sale, national developers are hurrying to finish models and spec homes to compete with their local counterparts.

"There's demand to get these homes done," said Cammie Longenécker, vice president of sales and marketing for Taylor Morrison, an Arizona-based builder that is active locally.

Atlanta-based builder Ashton Woods Homes expects to make its debut in Sarasota next month, when it starts work on 91 single-family homes in its Whitaker Park community off Richardson Road.

"Real estate has started to come back to normal conditions, and we were looking around the state for other markets we could get into," said Mike Roche, vice president of sales and marketing for Ashton Woods. "Sarasota was at the top of the list. We want to be a major player here."

The developer said Thursday construction at Whitaker Park will begin within 90 days, with offerings ranging from three- to five-bedroom homes between 1,700 square feet to 3,000 square feet.

Ashton Woods anticipates prices to start in the high $200,000s, climbing to $400,000.

The company has been building homes in Orlando and Tampa for more than a decade, selling 480 homes between those two markets this year.

Whitaker Park, along with 140 homes Ashton Woods will build as part of the new phase of Rosedale in East Bradenton, will become the company's first developments in Southwest Florida.

By mid-summer, Ashton Woods plans to have four active projects here.

Roche said Sarasota's inventory, which is flirting with decade lows, combined with rising sales, prices and residential permit activity, has prompted the company to look for opportunities here.

And Ashton Woods is not alone.

California-based Ryland Homes, once the nation's third-largest builder, has begun construction in five communities from Parrish to Sarasota. In all, it has more than 600 single-family lots carved out for development.

Ryland's newest community — its first in Sarasota in several years — is Palmer Lakes, where its first model opened just a couple of months ago. Already, 10 new homes have been sold out of 78 available lots.

Ryland also is under contract on three additional parcels that are expected to close early next year. When that occurs, it would provide the company with another 325 home sites, said Joe Fontana, Ryland Homes' division president.

"We're seeing a market now where there's some wind at your back, so we're investing more capital south of Tampa Bay," Fontana said. "There's a lot more family formations being felt by builders, and we have the financial strength to go in and build these large projects."

Miami-based Lennar Homes, meanwhile, has acquired a modest seven home sites in Cypress Falls, a gated adult community inside The Woodlands in North Port.

Priced from the mid- $100,000s, the single-family homes planned there will range in size from 1,677 square feet to 2,529 square feet. A grand opening is planned for late January.

Lennar, one of the nation's largest builders, also is actively building at its Riverstrand community in Bradenton, and in Stoneybrook At Venice.

The company in November purchased about 172 acres in Lakewood Ranch from master developer Schroeder-Manatee Ranch for $6.6 million, where it intends to build as many as 281 homes. Construction at the Bridgewater community is expected to begin next year.

"We continue to put spec homes in the ground, knowing they will be sold before they're ready to close," said Matt Devereaux, director of sales for Lennar. "Some might want a house in 30 days, some in six months."

But perhaps the most active national builder in Southwest Florida is Taylor Morrison. Headquartered in Scottsdale, Ariz., the company is building in eight neighborhoods between Manatee and Sarasota counties.

Its most recent projects include 95 single-family home sites at Arbor Reserve, in Bradenton, which is slated to break ground in January, and Esplanade by Siesta Key, a gated community slated for 247 single-family homes. Work there is underway.

Dozens of homes are now under construction at Taylor Morrison's Esplanade Golf & Country Club in Lakewood Ranch, which contains 1,250 home sites. A second phase, set to include an 18-hole golf course and other amenities, also is planned.

Taylor Morrison also is finalizing permitting for Arbor Lakes at Palmer Ranch, where development of 260 single-family homes on 217 acres is expected to begin in 2013.

The company saw sales in the area grow 23 percent this year, amid a shift to building smaller and less expensive homes to compete with foreclosures. With supplies of distressed homes diminishing, Taylor Morrison expects those figures to climb even further.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.